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New European Union System for Safeguarding Financial Stability

3 committees exist in financial services sector at EU level with advisory powers (Lamfalussy level 3 Committees): Committee of European Banking Supervisors

(CEBS), Committee of European Insurance and

Occupational Pensions Committee (CEIOPS) Committee of European Securities Regulators

(CESR).

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• High-level group chaired by J. de Larosière recommended transforming the three Committees into European Authorities (Micro prudential supervision)

• Introducing Macro-prudential supervision to limit the distress of the financial system as a whole in order to protect the overall economy from significant losses in real output

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Source: de Larosiere Report 4

• Creation of a new European Systemic Risk Board (ESRB) and

• European System of Financial Supervisors (ESFS), composed of new European Supervisory Authorities

• Legislative proposals already exist• Supervisors should be established in the

beginning of 2011

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• Part of European System of Financial Supervisors

• Transformation from CESR to ESMA• Board of supervisors (heads of national

supervisors) is decision-making body• Internal organization (Chairperson,

Executive Director, etc.)

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• Improving the functioning of the internal market

• Effective and consistent level of regulation and supervision

• Protecting investors• Ensuring the integrity, efficiency and orderly

functioning of financial markets• Safeguarding the stability of the financial

system• Strengthening international supervisory

coordination7

• Develop technical standards• Powers to ensure the consistent

application of Community rules• Action in emergency situations• Settlement of disagreements between

national supervisory authorities• Colleges of supervisors

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• Common supervisory culture, delegation of tasks and responsibilities and peer reviews

• Assessment of market developments• International and advisory role• Collection of information• Relationship with the ESRB• Safeguard

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• Adoption to the EU new supervision system (adjustment of the SMA, BS and ISA to the new system)

• Development of Slovenian capital market (How to increase liquidity on LJSE?)

• Introduction of new UCITS legislation• Pension reform (three pillars system and

new competencies for the SMA)

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Thank you for your attention

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